Fathan Qorib, Pirhot Nababan
Minister of Finance Agus Martowardojo answered questions from the House of Representatives (House) during a fit and proper test, Monday (25/3), as the only candidate for the Governor of Bank Indonesia (BI) position. During the test, he expressed his support for sharia banking development.
According to Agus, the fact that Indonesia has the largest moslem population is an important factor in developing sharia banking. "As the central bank, BI must take the leading role in creating Islamic Finance Liquidity Management," he explained.
Agus stated that there are several short-term policies to support this plan. First, there will be an improvement to human resources. According to Agus, an education program can be developed in order to offer a new field of research and study on sharia finance.
Furthermore, financial institutions must be more creative in innovating new products that are based on sharia and public needs. Agus said that this objective can be achieved by organizing a focus group discussion involving sharia banking experts.
Agus further explained that BI needs to improve its international cooperation with other countries and international financial institutions in order to strengthen the sharia financial sector.
House members supported Agus' view to develop sharia banking in Indonesia. However, there are some concerns that need to be resolved, such as the issue of the interest rate offered by sharia banks.
Anna Muawanah, member of Commission XI of the House, said that based on the information she obtained, sharia banks offer higher interest rates than commercial banks. If sharia banks could lower the interest rate, she concluded that 90 percent of the people will use sharia banking services.
(jt)
Fathan Qorib, Pirhot Nababan
Minister of Finance Agus Martowardojo answered questions from the House of Representatives (House) during a fit and proper test, Monday (25/3), as the only candidate for the Governor of Bank Indonesia (BI) position. During the test, he expressed his support for sharia banking development.
According to Agus, the fact that Indonesia has the largest moslem population is an important factor in developing sharia banking. "As the central bank, BI must take the leading role in creating Islamic Finance Liquidity Management," he explained.
Agus stated that there are several short-term policies to support this plan. First, there will be an improvement to human resources. According to Agus, an education program can be developed in order to offer a new field of research and study on sharia finance.
Furthermore, financial institutions must be more creative in innovating new products that are based on sharia and public needs. Agus said that this objective can be achieved by organizing a focus group discussion involving sharia banking experts.
Agus further explained that BI needs to improve its international cooperation with other countries and international financial institutions in order to strengthen the sharia financial sector.
House members supported Agus' view to develop sharia banking in Indonesia. However, there are some concerns that need to be resolved, such as the issue of the interest rate offered by sharia banks.
Anna Muawanah, member of Commission XI of the House, said that based on the information she obtained, sharia banks offer higher interest rates than commercial banks. If sharia banks could lower the interest rate, she concluded that 90 percent of the people will use sharia banking services.
(jt)